Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.
Liquidity Ratios, Solvency Ratios, Profitability Ratios, Effieciency Ratios.....these determine the Perfect Financial Position of a business.
1.Crrent Ratio: Current Assets / Current Liabilities (main Liquidity Ratio)
-- explains the company's short term liquidity position.
2. Debt-Equity Ratio (main Solvency Ratio)
= Total of Companies External Debts/ Total Equity and Capital Reservess
--Explain the capability of company to perform its long term obligations
3. P/V Ratio: Gross Profit/ Net Sales ( main Profitability Ratio)
--Explains how well the company is Erning profits surpassing its BEP
4. Inventory Ratio: Cost of Goods Sold / Average Inventory (Main Efficiency Ratio)
--Explains--how well the Current Assets are utilised with lesser holding period
(All Ratios can be expressed by way of percentage)
Assets + expenses + Partners withdrawals = liabilities + equity + revenue
I think all the important financial ratios to determine the financial position and financial ratios are divided into four main sections, namely:
1. liquidity ratios
2. profitability ratios
3. efficiency ratios
4. leverage ratios
.Crrent Ratio: Current Assets / Current Liabilities (main Liquidity Ratio) -- explains the company's short term liquidity position